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India Affirms E20 Safety, Rules Out Compensation Fund as Gadkari Promotes Flex-Fuel Vehicles

The government’s assurance rests on testing by IOCL, SIAM, ARAI.

Overview

  • In a written reply to Parliament, Nitin Gadkari said studies show no significant performance changes or component damage from using 20% ethanol-blended petrol.
  • The petroleum ministry’s Aug. 4 note underpins the position and consolidates findings on E20 from multiple test programs.
  • The government confirmed there is no proposal to create a compensation fund for proven E20-related damage despite concerns raised by vehicle owners and lawmakers.
  • Vehicles sold before April 1, 2023 were designed for E10, while those sold afterward are E20 material compliant, with older models not explicitly barred from using E20.
  • Gadkari showcased a 100% ethanol flex-fuel car and cited scaling infrastructure and industry participation, including about 550 ethanol plants, roughly 400 IOCL ethanol pumps and 100% ethanol-compatible two-wheelers, as an automaker lobby notes a 2–4% mileage decline.